How To Measure the ROI of Your Mobile App
Mobile apps are one of the fastest growing areas of business marketing today. Everyone from large corporations to small businesses have some sort of mobile app to connect with customers. For small businesses that must be more conservative with their funds, the return on investment must be there before they invest in any new technology like a mobile app. However, measuring the return on investment of a mobile app can be somewhat difficult for many people and businesses. There are several ways in which the mobile app return on investment can be measured, all of which are beneficial to the data of a business.
One of the most obvious ways for a business to measure the mobile app return on investment is the increased customer traffic to their website through the mobile app. One great aspect of mobile apps is that they do, in fact, increase the traffic to websites for businesses that have one. However, one negative side to this is the fact that the closing rate goes down for businesses. This rate essentially measures how many customers make a purchase after visiting the website. With mobile apps, it is easier for casual customers with no need of buying the product to browse the website. Businesses must work to drive traffic to the website through the app, and then turn those visitors into customers that will make large purchases from the website.
Another way to measure the return on investment of a mobile app is to measure the sales dollars generated by visitors to the website through the mobile app. This is perhaps the easiest and most efficient way to measure the return on investment of a mobile app. Sales dollars are really what drive a business, and after buying and maintaining a mobile app much of the money that comes in through that medium should be value added. In addition to the sales dollars that it generates, it will also generate happy customers that will come back to purchase more products due to the convenience of a mobile app.
Rate of Paying Returning Customers
Finally, another way to measure the return on investment of a mobile app is to measure the rate at which paying customers return to the site through the mobile app in order to make another purchase. Whether the product meets the customers needs or not if the mobile app is not easy to navigate through and make purchases, customers are not likely to return through that medium to make purchases. One of the best measures that any business can have concerning the return on investment is to simply measure how many paying customers return to the app over a specified period of time such as a month or year. If a business can have a high return rate for customers, this means that the app is doing its job and customers have an enjoyable experience when making a purchase through the app.
Overall, mobile apps are one of the most important decisions that any business, especially a small one, can make with all of the new technology available today. Many people believe that we will soon cross the threshold where more purchases are made over mobile than over just the standard internet on a device like a laptop. To be successful in this changing landscape, businesses must know how to measure the return on investment of any app that they purchase. By using the three criteria listed here, businesses can know whether their investment is paying off now and in the future.